Wednesday, August 11, 2010

SBA Loan Basics for Borrowers- What is a small business?

To be eligible for SBA financial assistance, which is a fancy way of saying to get a SBA loan, your company has to be considered a small business. Remember, SBA means SMALL BUSINESS Administration.

SBA uses what they call a size standard for both the SBA 504 and 7(a) loan program.

Currently the 504 loan program defines a small business as one which has net profit after taxes less than $3 million averaged over the last three years and a BUSINESS net worth less than $8.5 million.

The SBA 7(a) loan program currently uses the same standard as a 504 loan.

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